My son is vegetarian and while seeds and nuts are a great part of his diet, it does not need to be peanuts. In fact, nuts of any kind to frequently are not good for you as they are extremely high in fat.

I think the middle ground is to not serve peanuts or peanut products all together during daycare hours. You then say you are not a peanut free home but you do not serve anything with peanuts in it to your daycare children. There is obviously still a risk of cross contamination but the risk towards the child has been reduced.

But the child has had no more than a rash/hives from eating a large amount of peanuts. The allergist said that the allergy may never become life threatening. The reason is because the testing showed the child is not allergic by smell or touch. They aren't even re testing for 4 years.
...The allergist said MAYnever be life threatening, this is a very uncertain statement meaning "I don't know", but who really knows how things might change. You can take the risks as you so choice with your own children, but with someone else's child its a huge liability. Also with all your experience with allergies, you still can not compare one person to the next, so you really shouldn't down play the allergy of another persons child because you never know how their next reaction will be.

Most of the time people say put your family's needs first but in the case of the safety of someone else's child in your care, regardless of all the but's, maybe's and uncertainties, their safety has to be priority. You need to do what's right for you but not if it puts another child at risk.

If you are comfortable with the middle ground of not handling peanut products during daycare hours, but not being a peanut free home then It may reduce the risks somewhat and you can still serve peanuts to your family. I would however be asking the parent's to sign a waiver so they agree to this arrangement in writing, and to prevent any comebacks on your part. Then it's down to the parents to decide what their comfort level is.

Everything is okay, until it's not.